Quota
Concept
A revenue or activity target assigned to a salesperson or team, typically set annually or quarterly.
Quota is the revenue (or activity) target assigned to a salesperson or team. It's the number they're expected to hit, and it directly determines their variable compensation. Quota setting is both an art and a science -- set too high and you demotivate; too low and you leave money on the table.
Types of Quotas
| Type | Measures | Best For |
|------|----------|----------|
| Revenue quota | Closed-won ARR/MRR | AEs, closers |
| Activity quota | Calls, meetings, demos | SDRs, new hires |
| Pipeline quota | Pipeline created | AEs, SDRs |
| Unit quota | Deals closed, logos won | High-volume sales |